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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-2.75 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.41 suggests that the company is not a manipulator.

PAM' s Beneish M-Score Range Over the Past 10 Years
Min: -5.67   Max: 1.27
Current: -2.75

-5.67
1.27

During the past 12 years, the highest Beneish M-Score of Pampa Energia SA was 1.27. The lowest was -5.67. And the median was -2.82.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.6701+0.528 * 0.3709+0.404 * 1.3834+0.892 * 1.1912+0.115 * 0.6714
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9543+4.679 * -0.1252-0.327 * 1.0001
=-3.41

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $201.6 Mil.
Revenue was 285.563201863 + 289.422760887 + 138.909217338 + 202.642544909 = $916.5 Mil.
Gross Profit was 6.83319638455 + 64.9019446727 + -6.46102140153 + 3.57806068728 = $68.9 Mil.
Total Current Assets was $613.9 Mil.
Total Assets was $2,327.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,133.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $75.9 Mil.
Selling, General & Admin. Expense(SGA) was $242.2 Mil.
Total Current Liabilities was $852.3 Mil.
Long-Term Debt was $485.1 Mil.
Net Income was -45.7716379074 + 41.6049027664 + 159.298385228 + 4.28288822948 = $159.4 Mil.
Non Operating Income was -11.9175568337 + 27.655847713 + 113.126168585 + -16.9696776321 = $111.9 Mil.
Cash Flow from Operations was 89.0213640099 + 11.8792796494 + 124.315923665 + 113.643470215 = $338.9 Mil.
Accounts Receivable was $252.5 Mil.
Revenue was 192.255543939 + 190.257831899 + 194.362062917 + 192.576077919 = $769.5 Mil.
Gross Profit was -0.509547130358 + 13.9011531004 + 2.46988656298 + 5.5790473928 = $21.4 Mil.
Total Current Assets was $650.9 Mil.
Total Assets was $2,280.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,218.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $53.6 Mil.
Selling, General & Admin. Expense(SGA) was $213.1 Mil.
Total Current Liabilities was $869.9 Mil.
Long-Term Debt was $440.5 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(201.577307587 / 916.537724997) / (252.528916525 / 769.451516673)
=0.21993345 / 0.32819341
=0.6701

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(21.4405399259 / 769.451516673) / (68.852180343 / 916.537724997)
=0.02786471 / 0.07512204
=0.3709

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (613.912558203 + 1133.20562859) / 2327.05998357) / (1 - (650.916744621 + 1218.68398173) / 2280.41281021)
=0.24921652 / 0.18014812
=1.3834

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=916.537724997 / 769.451516673
=1.1912

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(53.6285280251 / (53.6285280251 + 1218.68398173)) / (75.9030555236 / (75.9030555236 + 1133.20562859))
=0.04215044 / 0.06277604
=0.6714

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(242.199838275 / 916.537724997) / (213.070828249 / 769.451516673)
=0.26425518 / 0.27691261
=0.9543

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((485.056080526 + 852.287250068) / 2327.05998357) / ((440.523413856 + 869.936169042) / 2280.41281021)
=0.57469225 / 0.57465893
=1.0001

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(159.414538316 - 111.894781832 - 338.860037539) / 2327.05998357
=-0.1252

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.41 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.46250.49210.75131.06371.38350.94561.54141.10181.0771
GMI 1.59381.0931.0541.21921.87841.8956-1.0086-1.77722.9801
AQI 0.26911.08390.77041.04442.05530.78030.59691.15020.8705
SGI 1186.27912.47460.92671.13630.99261.120.61850.8620.7625
DEPI 3.20070.50331.08850.91450.94291.01251.1361.30490.8628
SGAI 0.03550.88341.14781.06071.01380.94341.89561.14041.2514
LVGI 4.9181.11490.93571.09661.15431.15641.25151.00430.9267
TATA -0.0243-0.0633-0.0942-0.0594-0.135-0.1453-0.0662-0.1064-0.1013
M-score 1,054.26-1.92-3.27-2.50-1.93-2.76-4.08-4.40-2.14

Pampa Energia SA Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.42461.54961.38281.20591.13051.06971.03050.85160.93370.6701
GMI -0.566415.914-2.3556-1.7869-0.6029-0.02790.47711.9840.37440.3709
AQI 0.57160.86880.79621.15021.14481.0730.94410.87050.8741.3834
SGI 0.61870.68680.73260.78760.88420.92721.00760.96431.08241.1912
DEPI 0.89921.00441.37591.41611.60311.36940.94960.71060.64690.6714
SGAI 1.81141.44311.36491.18761.20151.29151.23581.24251.05190.9543
LVGI 1.28791.18741.14411.00430.86850.8820.92250.92670.95041.0001
TATA -0.0592-0.1588-0.1804-0.1127-0.0882-0.1032-0.0659-0.1284-0.1115-0.1252
M-score -3.954.69-5.13-4.40-3.59-3.45-3.07-2.83-3.40-3.41
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